Although I trust my financial planner, should I have my portfolio periodically reviewed by another financial planner, and if so, how often?
Newark, New Jersey
Your relationship with a financial planner is much like the one with your family doctor. You’re trusting both professionals with your well-being. Even if you have a good relationship with your planner, seek out a second fiscal opinion if you have doubts about the advice.
When should you get another opinion? Think major surgery. Let’s say you inherit a windfall of $100,000 and your planner wants to invest the money in a more speculative investment than normal. It could be the equivalent of an unnecessary operation, so seek out another point of view.
Seeking an outside opinion can get expensive, so you should limit your queries to every other year. And if you find yourself constantly second-guessing your advisor’s counsel, then maybe you need a new planner. Contact the National Association of Securities Professionals-an umbrella group for minority and women securities professionals-in Washington, D.C. (202-371-5535), to find an African American financial planner.
Another resource is the National Association
of Personal Financial Advisors (www.napfa.org), whose Website lets you locate a fee-only planner in your area.
Above all else, be honest with your planner. If you think the advice isn’t sound, let him or her know. Perhaps you can come to an understanding without having to consult another advisor.
And always review your financial plan with your regular advisor, on a quarterly or annual basis to ensure your financial goals are being met.
Mail your finance questions to Ask B.E., black enterprise, 130 Fifth Ave., New York, NY 10011, or send an e-mail to firstname.lastname@example.org.